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HashKey Global - Exchange Rules

HashKey Global Team

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HashKey Global - Exchange Rules

 
 
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HashKey Bermuda Limited (“HBML” or “we”) operates the HashKey Global. These HashKey Global - Exchange Rules (“Exchange Rules”) is an important document governing your use of HashKey Global. Please ensure you read it carefully and familiarise yourself with these Exchange Rules prior to and during your trading on the HashKey Global. These Exchange Rules are subject to change at our discretion and you are reminded to check the latest version on our website from time to time. You are also required to read our Privacy Policy, and Client Risk Disclosures Statement which impose additional requirements to these Exchange Rules. By depositing funds and/or trading on the HashKey Global you acknowledge that you have read, fully understood and accepted the terms in the aforesaid documents. For the avoidance of doubt, in the event of any inconsistency between those documents and these Exchange Rules, these Exchange Rules will prevail.
If you have any questions about these Exchange Rules, please contact us using the details below. In any event, we do not act as your advisors in any capacity and you should consult your independent professional advisors for any issues or questions you may have regarding entering into any contractual relationship with us.
 
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Table of Contents

 
HashKey Global - Exchange Rules1
Part A – General6
Section 1 Interpretation6
1.1Definitions6
1.2Rules of Interpretation8
Section 2Introduction9
2.1HashKey Global9
2.2Token Admission and Review Committee11
Section 3About the Exchange Rules12
3.1Application12
3.2Status12
3.3Procedure where none laid down12
3.4General provisions12
Part B - Listing13
Section 4Listing Criteria13
4.1HBML Scope of Listing13
4.2General requirements13
4.3Additional requirements for Large-cap Digital Assets14
4.4Specific requirements for Security Tokens14
4.5Minimum requirements only14
Section 5Listing Procedure14
5.1Application procedure14
5.2Documents and information required14
5.3Interview and further information or document15
5.4Due diligence15
5.5Declarations and undertakings15
5.6Listing conditions15
5.7Listing fees and costs15
Section 6Withdrawal of listing application15
Section 7Listing Document16
7.1Information in Listing Document16
7.2Statements in Listing Document16
7.3Approval for dissemination17
7.4Amendment and variation of Listing Document17
7.5Distribution of Listing Document17
Part C – Continuing Obligations and Responsibilities of Issuers17
Section 8Notification requirement17
8.1Issuer’s obligation to notify17
8.2Disclosure to the market18
8.3HBML’s rights to request information18
Section 9 Payment of fees18
Section 10Financial information18
Section 11Maintenance of eligibility18
Section 12Self-reporting18
Part D – Removal of Digital Asset19
Section 13HBML’s power to remove a Digital Asset from HashKey Global19
13.1Relevant circumstances19
13.2Removal of Digital Asset from HashKey Global Warning20
Section 14Removal of Digital Asset from Platform request20
Section 15Removal of Digital Asset from HashKey Global Notification21
Section 16Withdrawal of Client Money and Digital Assets upon removal21
Section 17 Transfer of Listing21
Section 18Relisting21
Part E – Trading Participants21
Section 19Type of Trading Participants21
Section 20Eligibility22
20.1Individuals and institutions22
20.2Other criteria22
Section 21Application procedure22
Section 22Document and information required23
Section 23Declaration, undertakings and deposit requirement23
Section 24 HBML’s decision24
24.1Decision subject to receipt of all required information24
24.2Approval conditions24
Section 25Change of Professional Investor status after registration24
Part F – Account Opening and Trading Rules24
Section 26Trading on HashKey Global24
Section 27List of assets traded24
Section 28Permitted investors only25
Section 29Pre-funded trades only25
Section 30Trading channels25
Section 31Trading time25
Section 32Limits and price limits of an order25
Section 33Trading pairs25
Section 34Order types and Order time limit25
34.1Type of Orders25
34.2Order Time Limit26
Section 35Order execution methodology26
35.1Order Verification Rules26
35.2Order Priority27
35.3Execution of Order27
35.4Cancellation and amendment of Order28
35.5Conflicts of Interest28
Section 36Depositing and withdrawing Client’s fiat currencies and Digital Assets28
36.1Deposit/Withdrawal Procedures28
36.2General Rules for Deposit/Withdrawal28
Section 37Restricting, suspending, rejecting or cancelling Orders29
Section 38Clearing and settlement29
Section 39Preferred banking partners30
Part G – Trading Halt, Suspension and Resumption of Trading30
Section 40Criteria and procedure of trading halt, suspension and resumption of trading30
Section 41Notification of trading halt and suspension30
Part H – Custody of Digital Assets30
Section 44Title to Digital Assets31
Section 45Segregated accounts31
45.1Digital Assets31
45.2Client’s fiat currencies31
Part I – Prevention of market manipulation and abusive activities31
Section 46Identify market manipulative and abusive activities31
Section 47Reporting32
Section 48Market surveillance programme32
Part J – Fees32
Section 49Fees to be published on website32
Part K – Breach of these Exchange Rules32
Section 50HBML’s power to investigate32
Section 51Request to remedy33
Section 52Penalties33
Part L – Security of HashKey Global33
Section 53 Security measures33
Section 54System Maintenance and Interruptions34
54.1System Maintenance Arrangements34
54.2Unexpected Interruptions Handling34
Part M – Contact, Complaint Procedures and Dispute Resolutions35
Section 55Contact information of HashKey Global35
Section 56Complaint procedures35
Section 57Dispute resolution35
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Part A – General

Section 1 Interpretation

1.1Definitions

In these Exchange Rules, unless the context requires otherwise, the following terms shall have the meaning set forth below:
“Account” means the account (including its sub-account, if any) opened by a Trading Participant with HashKey Global for the purposes of utilizing the services at HashKey Global, including trading Digital Assets.
Account Opening and Trading Rules means HBML’s “Account Opening and Trading Rules” which governs such matters relating to opening an account and trading on HashKey Global as published on HashKey Global’s official website and updated from time to time.
AML means HBML’s anti-money laundering check which is to ensure that no illegally obtained funds or proceeds of criminal activities are used to conduct activities on HashKey Global.
API means application processing interface.
Associated Entity means HashKey Xpert Limited which:
  1. is a limited liability company incorporated in Hong Kong;
  2. holds a “trust or company service provider licence” (Licence No T006486) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (Cap. 615 of the Laws of Hong Kong); and
  3. is an Affiliate of HBML.
Business Day means any day that is not a Saturday, Sunday or a public holiday and on which banks are generally open for business in Bermuda and Hong Kong.
BMA means the Bermuda Monetary Authority.
Exchange Rules means the HashKey Global - Exchange Rules as provided through the official website of HashKey Global from time to time.
HashKey Group means HashKey Digital Asset Group Limited and its affiliates.
HashKey Global means the Digital Asset trading platform branded “HashKey Global” which is operated by HBML.
HBML means HashKey Bermuda Limited (Registration number: 202302864), an exempted company limited by shares incorporated under the laws of Bermuda which has been granted a Class F licence by the Bermuda Monetary Authority under the Digital Asset Business Act 2018 to operate a digital asset trading platform, including its successor and assigns.
HKIAC means the Hong Kong International Arbitration Centre.
Hong Kong means the Hong Kong Special Administrative Region of the People’s Republic of China.
Issuer means any person approved by HBML under the Exchange Rules whose Digital Asset is listed on HashKey Global.
Issuer Applicant means any person whose Digital Asset is the subject of an application for listing on HashKey Global.
KYC means HBML’s “know your client” process which is for verifying the identity of the Trading Participants.
Listing Committee means the committee established by HBML as an independent decision maker for listing issues and a review body for decisions made by HBML.
Listing Document means a document that complies with Section 7.
Order means an instruction from a Trading Participant to either buy or sell a Digital Asset on HashKey Global.
Proscribed Person means a person who appears to HBML to:
(a)be in breach of any AML/CFT Requirements of any jurisdiction;
(b)appear in a list of persons with whom dealings are proscribed by the United Nations or another Government Agency or a regulatory authority under Applicable Laws; or
(c)act on behalf, or for the benefit of, any person described in paragraph (a) or (b);
Token Admission Policy and Procedures meansHBML’s internal policy and procedures which governs the process of listing and removal Digital Assets on HashKey Global, as updated from time to time.
Asset Operations Team means the team at HBML responsible for researching, reviewing, and gathering all the expert feedbacks for Listing Committee.
Trading Applicant means any person who is the subject of an application for opening an account and dealing in Digital Assets on HashKey Global.
Trading Participants means those persons and entities set out in Section 19 which are approved by HBML under the Exchange Rules to open an account and deal in Digital Assets on HashKey Global.
User means a user of HashKey Global, including Issuers, Issuer Applicants, Trading Participants and Trading Applicants.
Digital Assets means digital representations of value which may be in the form of digital tokens (such as digital currencies, utility tokens or security or asset-backed tokens), any other virtual commodities, crypto assets or other assets of essentially the same nature.
“we” means HBML.

  1.   Rules of Interpretation

  1. References in the Exchange Rules to Bermuda ordinances and to Bermuda statutory provisions shall be construed as references to those ordinances or statutory provisions as respectively modified (on or before the date hereof) or re-enacted (whether before or after the date hereof) from time to time and to any orders, regulations, instruments or subordinate legislation made under the relevant ordinances or provisions thereof which has been so re-enacted (with or without modifications).
  2. The headings are inserted for convenience only and shall not affect the construction of the Exchange Rules.
  3. Except where the context otherwise requires words denoting the singular include the plural and vice versa; words denoting any one gender include all genders; words denoting persons include incorporations and firms and vice versa.
  4. Except where the context otherwise requires references to the word include or including (or any similar term) are not to be construed as implying any limitation and general words introduced by the word other (or any similar term) shall not be given a restrictive meaning by reason of the fact that they are preceded by words indicating a particular class of acts, matters or things.
  5. Except where the context otherwise requires any reference to writing or written includes any method of reproducing words or text in a legible and non-transitory form.
  6. Except where the context otherwise requires references to times of the day are to that time in UTC+0 (Greenwich Mean Time) and references to a day are to a period of 24 hours running from midnight to midnight in UTC+0 (Greenwich Mean Time).
  7. References to Sections and Schedules are (unless the context requires otherwise) to sections of and schedules to the Exchange Rules.
  8. All representations, undertakings, warranties, indemnities, covenants, agreements and obligations given or entered into by more than one person are given or entered into severally unless otherwise specified.

Section 2Introduction

2.1HashKey Global

General

HashKey Global is an automated Digital Asset trading platform operated by HBML. Its mission is to provide safe, convenient and highly efficient services relating to Digital Assets to its customers. Neither HashKey Global nor HBML is a principal party to any transactions conducted via HashKey Global.

Regulatory

HBML is a Digital Asset trading platform granted a Class F licence by the Bermuda Monetary Authority under the Digital Asset Business Act 2018 to operate a digital asset trading platform.

Risk management

HBML maintains a sound risk management framework to identify, measure, monitor and manage the full range of risks arising from its businesses and operations.

Notifications to Authority

As an entity which is licensed by the BMA, HBML has ongoing reporting and notification obligations to the BMA and may be required to submit such information as may be specified and requested by the BMA and other law enforcement authorities from time to time.

Good Industry Practice

Apart from observing the regulatory regime of the BMA and other applicable compliance measures, HBML maintains and operates HashKey Global in accordance with good industry practices, which platform operators and entities engaged in internet trading incorporate into their information technology and cybersecurity risk management frameworks.

Security of HashKey Global

  1. HBML uses its best endeavours to manage and supervise the design, development, deployment and operation of HashKey Global in accordance with industry best practices and international standards to ensure that HashKey Global is appropriately secured against cyberattack, misuse or unauthorised access.
 
  1. HBML also has in place internal governance documentation and employs cybersecurity controls in accordance with industry best practices and international standards to protect HashKey Global from being abused and conducts regular reviews to ensure that security measures put in place are in line with changing market conditions and regulatory developments.

Exclusion of liability

While HBML commits to use all reasonable care in the performance of its duties under the Exchange Rules, neither HBML nor its Associated Entity will be in any way liable or responsible to any Users for any loss or liability arising from any act, default, omission or misconduct of HBML, except to the extent caused by its own gross negligence, fraud or wilful misconduct.

Records of trading

HBML is required to keep records of its operation of HashKey Global and its dealings with Client Money and Digital Assets of Trading Participants, and retain records in respect of transactions conducted in its systems, including:
  1. details of the Trading Participants;
  2. details of any restriction, suspension or termination of the access of any Trading Participants to HashKey Global;
  3. all notices and other information provided by HashKey Global to the Users; and
  4. routine daily and monthly summaries of trading in its systems.
Such information may be disclosed to third parties including the SFC, other regulators, law enforcement authorities and/or relevant Issuers as required from time to time.

Discretion of HBML

HBML may in its absolute sole discretion exercise powers granted under the Exchange Rules and applicable laws, including but not limited to accepting or rejecting any application or instructions. Unless as required under applicable laws, HBML will not give reasons for the exercise of any of its powers.

Forks

  1. When a hard fork is imminent, HBML will notify Users of the event and how HBML will handle it through email and announcement on HashKey Global’s website.
  2. HBML will suspend deposit and withdrawal requests until the hard fork is completed. This is to avoid the unnecessary risk of asset loss due to hard fork related security events.
  3. Depending on the specific events, HBML could suspend the trading of the Digital Assets involved until the hard fork is completed.
  4. HBML will update the product (e.g. name of Digital Asset) according to the consensus of the general blockchain and Digital Assets community.
  5. HBML will take a snapshot of Trading Participants’ asset for the Digital Asset involved at the block height right before the hard fork or right at the time of the hard fork. HBML will then distribute the new Digital Asset generated from the hard fork to the Trading Participants involved.
  6. HBML will provide deposit and withdrawal services for the new Digital Asset as a result of the hard fork. The new Digital Asset will be listed on HashKey Global according to HBML's listing rules and policies.
  7. HBML will provide 24/7 customer service with coverage aligned with exchange operation hours to cater for Trading Participants’ enquiries during a hard fork.

2.2Listing Committee

HBML will implement listing-related due diligence procedures in respect of HashKey Global. HBML will do so via the Listing Committee HBML.

Composition

  1. The Listing Committee will consist of the following members and any other person whom HBML’s directors deem appropriate, including but not limited to:
    1. a senior management of key business line, who will chair the LISTING COMMITTEE(“chairperson”);
 
  1. a senior management of compliance;
 
  1. a senior management of risk management; and
 
  1. a senior management of information technology.
The quorum for LISTING COMMITTEE meetings shall be more than half of the committee members. Decisions shall be determined by simple majority and, in the event of a tie, the chairperson of the meeting shall have the casting vote.
  1. In the case of any conflicts of interest, a LISTING COMMITTEE member is required to excuse himself from voting in respect of any listing applications which he may be interested in. Nonetheless, such LISTING COMMITTEE member may still be counted in the quorum at any such meeting at which any such listing application shall be considered.

Power and duty

  1. After the Asset Operations Team has conducted preliminary due diligence on Issuer Applicants and their Listing Documents, the LISTING COMMITTEE has the responsibility for the deliberation and review of the potential Digital Asset listing on HashKey Global. It has the power to:
 
  1. make decisions of material significance regarding Issuers, Issuer Applicants and the individuals concerned. These include approvals of listing applications, the imposition of any conditions if approvals are granted for the listing of Digital Assets and cancellations of listings; and
 
  1. act as a review body for listing recommendations made by the Asset Operations Team and has the final say regarding whether to approve the potential Digital Asset listing on HashKey Global.
    1. The chairperson of the LISTING COMMITTEE shall report to the board of directors of HBML on different areas of the activities of the LISTING COMMITTEE at the next meeting of the HBML board of directors following a meeting of the LISTING COMMITTEE.

Section 3About the Exchange Rules

  1. Application

The terms of the Exchange Rules are applicable to HBML and all Users.

  1. Status

The Exchange Rules govern all Users. HashKey Global will take into account the Exchange Rules in exercising its powers, functions and responsibilities hereunder or that are provided for by applicable laws.

  1. Procedure where none laid down

    1. In case no specific procedure is laid down in the Exchange Rules in connection with any actions required under the Exchange Rules, an application for directions should be made to HBML. Such direction shall be determined in the sole discretion of HBML.
    2. Actions performed in accordance with such directions of HBML shall constitute valid performance of such actions.

  1. General provisions

Time is of the essence

Time is of the essence in the performance of the Exchange Rules by Issuers, Issuer Applicants, Trading Participants and Trading Applicants.

Severance

If at any time any provision of the Exchange Rules is, or becomes, illegal, invalid or unenforceable in any respect, the legality, validity and enforceability of the remaining provisions of the Exchange Rules shall not be affected or impaired.

Variation of these Exchange Rules

HBML will provide a prior notice as soon as practicable to any amendment or variation of the Exchange Rules. Any variation to the Exchange Rules shall be binding only if it is in writing and is published on the official website of HashKey Global. Users who object to the amendments or variation will be given an opt-out option to terminate their Account and should send written objections to HBML within fourteen (14) Business Days after the publication of such amendment notice at HashKey Global’s website, failing which acceptance shall be deemed of such amendment, deletion, substitution or addition.

Third parties

These Exchanges Rules does not create or confer any rights or benefits enforceable by any person not a party to it except HBML’s Affiliates and nominees, and any other indemnified party may enforce its rights or benefits in the Agreement, including any indemnity, limitation or exclusion of liability; and a person who is a permitted successor or assignee of the rights or benefits of HBML under the Agreement may enforce those rights or benefits. Notwithstanding the foregoing, no consent from the persons referred to in this Clause shall be required for the parties to vary or rescind the Agreement (whether or not in a way that varies or extinguishes rights or benefits in favor of those third parties).
 

Governing laws

The Exchange Rules shall be governed by, and construed in all respects in accordance with, the laws of Hong Kong.

Part B - Listing

Section 4Listing Criteria

  1. General requirements

To allow HBML to perform due diligence on Digital Assets, set out below is a non-exhaustive list of general requirements and information which an Issuer Applicant shall provide to HBML before its Digital Assets may be approved to be listed on HashKey Global for trading:
  1. Background of management, development team, and any of its known key members;
  2. Regulatory status of Digital Asset in major jurisdictions;
  3. Supply, demand, maturity and liquidity of Digital Asset;Technical aspects of the Digital Asset;
  4. Development of the Digital Asset;
  5. Market and governance risks of the Digital Asset;
  6. Legal risks associated with the Digital Asset;
  7. Utility offered, novel use cases facilitated, technical structural or cryptoeconomic innovation, or administrative control exhibited by the Digital Asset and supporting information on viability of the project not dependent on continuous inflow into the Digital Asset;
  8. Enforceability of any rights extrinsic to the Digital Asset (for example, rights to any underlying assets) and the potential impact of the Digital Asset’s trading activity on the underlying markets; and
  9. Assessment on the money laundering and terrorist financing risks associated with the Digital Asset.

4.5Minimum requirements only

HBML endeavours to ensure that the decision-making process regarding the listing or removal of Digital Assets from HashKey Global is fair. Nonetheless, the listing requirements stated herein represent the minimum requirements only, and HBML may impose additional requirements as appropriate in approving the listing of any Digital Assets on HashKey Global.

Section 5Listing Procedure

5.1Application procedure

Preliminary application review

The Issuer Applicant should complete the application form provided by HBML (by email) and upon receipt, HBML will assess the admissibility of the Issuer Applicant and the relevant Digital Assets.

Full listing review

Upon the passing of the preliminary review, HBML will provide the Issuer Applicant a comprehensive list of required information and documents according to the class of underlying assets of the Digital Asset. Once HBML has received the fully-completed application pack from the Issuer Applicant, HBML will conduct a full listing review, including identifying any money laundering and terrorist financing risks which may arise in relation to the development and use of the relevant Digital Assets, services, business practices and technologies for both new and pre-existing products.

5.2Documents and information required

An application for listing shall be at least accompanied by copies of the following documents:
  1. Whitepaper: HBML will scrutinise all materials relevant to the offering including published information such as the whitepaper and any relevant marketing materials, as well as any projects associated with the Digital Asset as set out in its whitepaper and any previous major incidents associated with its history and development.
  2. Legal opinion: Written legal advice in the form of a legal opinion or memorandum on the legal and regulatory status of every Digital Asset that will be made available to Users, in particular, whether that Digital Asset falls within the definition of “securities” , and the implications for HBML.
 
  1. Smart Contract Audit: Smart contract audit report conducted by an independent assessor focused on reviewing and confirming the smart contract is not subject to any contract vulnerabilities or security flaws to a high level of confidence.
  2. Listing Document: please see Section 7 below for details.

5.3Interview and further information or document

HBML may require an Issuer Applicant to attend interviews, give presentations or provide any additional information or documents which HBML at its sole discretion considers to be necessary or relevant to assess the listing application.

5.4Due diligence

HBML will perform all reasonable due diligence on all Digital Assets before including them on HashKey Global for trading, and to verify that they continue to satisfy all listing criteria in accordance with the Token Admission Policy and Procedures and internal governance documentation. The Issuer Applicant agrees that HBML may at its sole discretion decide to engage independent experts to verify or assess the application and the Issuer Applicant authorises HBML to disclose information and documents obtained from the Issuer Applicant to such experts.

5.5Declarations and undertakings

HBML may require an Issuer Applicant to make a declaration or undertaking in respect of the listing application in a separate agreement to be entered into between HBML and the Issuer Applicant.

5.6Listing conditions

HBML may attach to a listing any conditions that HBML considers appropriate, and vary or revoke the condition(s) when deemed necessary upon listing or at any time the Digital Asset is listed on HashKey Global.

5.7Listing fees and costs

  1. Issuer Applicants shall pay such listing fees and charges as HBML may prescribe and set out prior to the full listing application review. HBML shall have the right to waive all or part of the listing fees or charges at its sole discretion. Unless otherwise agreed by HBML, all listing fees and charges paid are non-refundable in any event.
 
  1. The Issuer Applicants shall be solely responsible for their own costs and expenses incurred in relation to the listing application regardless of the outcome.
 

Section 6Withdrawal of listing application

  1. An Issuer Applicant may withdraw a listing application by notifying HBML through email according to the terms and conditions as may be prescribed by HBML.
 
  1. HBML may at its sole discretion discontinue to assess any listing application but shall give the lssuer Applicant written notice (including via email).
 

Section 7Listing Document

7.1Information in Listing Document

A Listing Document should provide a concise and user-friendly summary, in plain language, of the key features and risks of a Digital Asset, including but not limited to the information listed in this Section. HBML may change or require additional information on a case-by-case basis in its sole discretion:
  1. Name and type of Digital Asset;
  2. Name of Issuer Applicant;
  3. The business, financial position, management and prospects of the Issuer Applicant, including:
    1. Where applicable, all relevant corporate and financial documentation of the Issuer Applicant;
    2. Where applicable, particulars and operating history of the Issuer Applicant;
  4. Key features of the Digital Asset:
    1. What is the product and how does it work;
    2. What are the key risks;
    3. What is the material technology that supports the Digital Asset, upon which its operation and/or transferability relies, including any relevant consensus protocol;
    4. Any information that is specific to its product class;
  5. Where applicable, detailed documentation in respect of the Digital Asset and the underlying asset;
  6. an investigation of the blockchain protocol of the Digital Asset;
  7. an investigation of the security of the Digital Asset;
  8. an investigation of the financial metrics of the project;
  9. Project description (if applicable);
  10. Key features of the project, covering the leading project team, business model, technical development, token economy and community and other important information (if applicable); and
  11. the risk assessment which includes the project due diligence conducted covering all the items from section 4.2 where not already provided.

7.2Statements in Listing Document

  1. The Listing Document should detail the nature and risks that Trading Participants may be exposed to in trading Digital Assets and using HashKey Global.
  2. In addition, a Listing Document must contain the following statement (or other statement for Digital Assets that are securities, as HBML considers appropriate) in a prominent position:
“HashKey Bermuda Limited (“HBML”) is not the issuer of the Digital Asset and did not prepare or compile this document. Therefore, HBML is not responsible for the contents of this document, makes no representations as to its accuracy or completeness and is not liable for any loss howsoever arising from or in reliance upon any part of the contents of this document. Investors should exercise caution, read and understand the contents of this document, and obtain appropriate professional advice before investing. The listing of the Digital Asset at HashKey Global does not translate to HBML’s recommendation or endorsement of any Digital Asset, nor does it guarantee the commercial merits of a Digital Asset or its performance. It does not mean the Digital Asset is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors.”

  1.   Approval for dissemination

  1. No party must disseminate the Listing Document unless and until HBML has approved the application.
  2. HBML’s approval of the application is not a recommendation or endorsement of a Digital Asset nor does it guarantee the commercial merits of a Digital Asset or its performance. It does not mean the Digital Asset is suitable for all investors nor is it an endorsement of its suitability for any particular investor or class of investors. HBML takes no responsibility for the contents of the Listing Document and makes no representation as to its accuracy or completeness.

  1.   Amendment and variation of Listing Document

An Issuer shall submit relevant information and supporting documents to HBML for any changes related to the Digital Asset or contents of a Listing Document. The changes should only be implemented and published after endorsement by HBML is obtained.

  1.   Distribution of Listing Document

Listing Document shall only be distributed through such means as approved by HBML.

Part C – Continuing Obligations and Responsibilities of Issuers

Section 8Notification requirement

8.1Issuer’s obligation to notify

An Issuer has the obligation to immediately notify HBML of:
  1. any change in control of the Issuer, including a change in any entity which controls the composition of the Issuer’s board of directors, controls more than half of the voting rights in the Issuer, or holds more than half of the Issuer’s issued share capital;
  2. any material change in the Issuer’s corporate information, business and financial position;
  3. any information that may reasonably be expected to materially affect market activity and/or price of any Digital Asset that it issues;
  4. any change in particulars submitted to HBML in its initial application and Listing Document, including any change in any Digital Asset that it issues;
  5. any proposed hard fork, upgrade, token migration, token split, token merge, rebranding, or airdrop;
  6. any regulatory action or court proceedings taken against the Issuer;
  7. any statutory demand (or other equivalent demand to repay debt in the relevant jurisdiction) issued against the Issuer or its affiliates;
  8. any other circumstances which may adversely affect the interests of Trading Participants holding the Digital Asset listed by the Issuer; and
  9. any other circumstances which may adversely affect an Issuer’s ability to carry out its obligations under the Exchange Rules or applicable laws.

8.2Disclosure to the market

The Issuers shall proactively liaise with HBML to publish on HashKey Global notifications to Trading Participants of the relevant material information for each Digital Asset, including providing Trading Participants with access to up-to-date offering documents or information, and providing Trading Participants with material information as soon as reasonably practicable to enable Trading Participants to appraise the position of their investments (for example, any major events in relation to a Digital Asset or any other material information provided by Issuers).

8.3HBML’s rights to request information

HBML may make enquiries to, or request further information from, an Issuer regarding its Digital Asset from time to time. Issuers shall respond to such enquiries or requests of HBML promptly within the prescribed timeframe set out in HBML’s notice of request.

Section 9 Payment of fees

All Issuers shall pay all fees associated with the use of HashKey Global as agreed with HashKey Global from time to time or so specified by HBML, otherwise HBML may delist its Digital Assets from HashKey Global.

Section 10Financial information

Subject to the type of Digital Asset and as notified by HBML, an Issuer shall submit to HBML its audited annual financial statements within 1 month from its issuance and/or a valuation report of the underlying asset to the satisfaction of HBML, and/or any other information reasonably requested by HBML.

Section 11Maintenance of eligibility

As long as its Digital Asset is listed on HashKey Global, an Issuer has a continuing obligation to ensure the listing criteria and listing conditions (if any) are satisfied and that the Issuer is not otherwise prohibited from using HashKey Global by operation of laws or other regulations.

Section 12Self-reporting

Any obligation to report under these Exchange Rules shall be undertaken by an Issuer proactively without needing to be first demanded by HBML. In particular, the Issuer shall immediately report to HBML and cease trading on HashKey Global if it has reason to believe that it does not meet the listing criteria or listing conditions (if any), or is otherwise under an obligation to cease trading pursuant to applicable laws.

Part D – Removal of Digital Asset

Section 13HBML’s power to remove a Digital Asset from HashKey Global

HBML may remove a Digital Asset from HashKey Global in accordance with the Listing Policy and Procedures or internal governance documentation.

13.1Relevant circumstances

HBML may take into account the below circumstances while taking a decision to remove a Digital Asset from HashKey Global:
  1. implementation of new regulatory standards and other compliance issues;
  2. the Token or Project Team posed significant regulatory risks, including but not limited to, that the Token constitutes a “security” in a jurisdiction and HashKey Global is unable to and/or unwilling to prevent its users from that jurisdiction from holding and/or trading the Token;
  3. blockchain or related technology becomes compromised or defective;
  4. the Digital Asset is no longer supported or maintained by the Issuer or others;
  5. complaints by Users or other third parties, which are related to significant issues such as fraud;
  6. the relevant Issuer conducts or is involved in any illegal activity(ies) within any jurisdiction(s), such as money laundering, fraud or pyramid selling;
  7. any threatened, pending or active legal proceeding or Claim (whether civil, criminal, or administrative, formal or informal, or direct or indirect) against the Project Team;
  8. the relevant Issuer is suspected of manipulating the market and the circumstances are serious;
  9. the relevant Issuer’s team is unreachable within a specified period indicated to the Issuer;
  10. any changes to project team members which HBML considers to have material adverse impact on the Digital Asset or the underlying asset or project;
  11. any core member of the Project Team has been found of significant fraud or deception, including but not limited to, misappropriation of the raised Tokens, unknown whereabouts of the Project development team, cease to support the Project technology, intentionally concealment of material facts of the Project, disclosure or creation of materially fraudulent, false or misleading information;
  12. the dissolution of the project’s development team or resignation of core team members without the consent of the community, resulting in the inability to continue development;
  13. there is a lack of liquidity in the Digital Asset’s market over a time period to be determined as appropriate by HBML;
  14. no order of the Digital Asset is recorded over a time period to be determined as appropriate by HBML after initial listing;
  15. the Issuer changes supply of the Digital Asset without giving prior notice to HBML;
  16. the Issuer unlocks the Tokens without fulfilling the commitment made in the whitepaper or in other forms;
  17. the Issuer conducts a hard fork, token migration, token split, token merge, and rebranding of the Digital Asset without giving prior notice to HBML;
  18. the Project Team has caused significant losses to HashKey Global and users caused by security issues in the main net or the contract, and the Project Team fails to reimburse HashKey Global for the losses and/or compensating its users for the losses that they suffer;
  19. other risks and hazards exist in a Project, such as hacking, coins stealing, concealment of additional issuance, and double spend attack;
  20. market cap of the Digital Asset drops below USD 1,000,000.
  21. HashKey Global’s daily average transaction volume of the Digital Asset is less than USD100,000 or other equivalent tokens for more than 30 days;
  22. there is no immediate action taken or solution given by the Issuer in the event of any crisis, as deemed by HBML, that is causing detrimental impact to HBML, HashKey Global and/or the Trading Participants, including but not limited to, discovery of inaccurate information, technical issues on the Digital Asset, security breach, etc.;
  23. the Issuer conducts any activity(ies) that damages the reputation of HBML or HashKey Global, and adversely affecting the Trading Participants’ interest;
  24. breach of these Exchange Rules which the breach cannot be or has not been cured within 14 days; or
  25. other circumstance(s) that, in the sole discretion of HBML, is/are sufficient for removal of Digital Asset from HashKey Global, including any circumstances which causes the Digital Asset to be no longer eligible or appropriate to continue to be listed, and at the request of the BMA or applicable authorities.

13.2Removal of Digital Asset from HashKey Global Warning

Where appropriate and feasible, a warning (verbal or written) would first be given to the Issuer if any of the above events took place. A reasonable time period, usually about 14 days, would be given to the Issuer to mitigate and/or remedy the problem to the satisfaction of HBML. Failing which, HBML will take actions to remove the Digital Asset.

Section 14Removal of Digital Asset from Platform request

  1. Any person, including the Issuer, may request HBML to exercise its power to remove a Digital Asset from HashKey Global. Nonetheless, the decision to remove a Digital Asset shall be made in the sole discretion of HBML taking into account the circumstances set out in Section 13.
  2. The request should contain the following information:
    1. the Digital Asset involved;
    2. details of any circumstances which warrant a removal;
    3. copies of any documents that provide evidence that supports the request; and
    4. name, email address and telephone number of the person submitting the request.

Section 15Removal of Digital Asset from HashKey Global Notification

HBML will notify Users for removal events by sending system messages and issue a removal announcement on HashKey Global’s official website and the trading portal for Digital Assets or projects that trigger the removal condition 7 days in advance. Any pending order received before the announcement date shall be executed within such period.

Section 16Withdrawal of Client Money and Digital Assets upon removal

  1. Within 30 days from the date of removal announcement and where possible, Trading Participants shall transfer the relevant Digital Asset to their personal wallets or other trading platform accounts. Trading Participants should ensure that their personal wallets or other trading platform accounts support the relevant Digital Asset. HBML shall not be responsible for any loss or damage sustained by the Trading Participant arising from, or related to, the use of incompatible wallets or accounts. In certain instances for technical or compliance reasons HBML may decide to shorten the withdrawal period.
  2. HBML will provide reasonable notice regarding the withdrawal on HashKey Global’s official website and the trading portal. HBML is not liable for any loss or damage sustained by Trading Participants in circumstances under which a Trading Participant for any reason fails to withdraw the delisted Digital Asset before the deadline or fails to withdraw the Digital Asset due to events outside of HBML’s control.

Section 17 Transfer of Listing

An Issuer who wishes to conduct a transfer of listing from HashKey Global to another Digital Asset exchange platform will be treated as a removal and the Issuer shall submit a removal request in accordance with Section 14.

Section 18Relisting

An application for the listing of a Digital Asset on HashKey Global which was previously listed on HashKey Global will be treated as a new application for listing.

Part E – Trading Participants

Section 19Type of Trading Participants

Trading Participants must submit and execute Orders at HashKey Global through their Accounts and include the following categories:
  1. Entity Investors: corporations or institutions.
  2. Retail Clients or Retail Investors: any person other than an Entity Investor.

Section 20Eligibility

20.1Individuals and institutions

To be eligible to be registered as a Trading Participant, the person or entity must:
  1. acknowledge and agree that the products and services of HashKey Global may be provided by HBML with the support of its affiliates;
  2. be a natural or legal person or other body corporate with full legal capacity and authority to enter into this Agreement;
  3. in the case of an individual, be at least 18 years old or of legal age specified by applicable law in your jurisdiction of residence for a binding contract;
  4. in the case of an authorized person entering into these Terms on behalf of a body corporate, have all the necessary rights and authorities to bind such body corporate;
  5. not be a citizen of, resident of, or located in, any of the non-prohibited jurisdictions published on the official website of HashKey Global from time to time, or any jurisdiction where trading in the relevant Digital Asset is not permissible under applicable law, or reside in a country where the relevant products and services are inaccessible;
  6. have passed all compliance checks by HBML (including but not limited to KYC, AML and countering the financing of terrorism, and risk tolerance);
  7. not be a Proscribed Person; and
  8. have not previously been suspended or refused from using services provided by HashKey Global.

20.2Other criteria

HBML may from time to time change or impose additional criteria regarding the eligibility of Trading Participants without prior notice.

Section 21Application procedure

  1. An application to register as a Trading Applicant may be made by following the process as set out in the Account Opening and Trading Rules.
  2. After receiving all the required information, HBML will review the submitted information. During this process, HBML may ask for additional information from the Trading Applicant. The review will normally take 3 Business Days but may be longer depending on the circumstances. After the review, HBML will send feedback to the Trading Applicant by email.
 
  1. Once an application has successfully passed HBML’s review, the Trading Applicant’s initial account will be formally converted into a client account capable of trading.
  2. A Trading Participant is not allowed to open multiple accounts, unless these are in the form of sub-accounts.

Section 22Document and information required

  1. For the purposes of HBML’s KYC and AML processes, HBML may require a Trading Participant or Trading Applicant to provide the following information:
 
  1. Documentary evidence of the Trading Participant’s or Trading Applicant’s true and full identity, and his/her financial situation, investment experience, investment objectives and beneficial ownership information.
  2. Where a Trading Participant’s or Trading Applicant’s IP address is masked (for example, where access is via a virtual private network), the unmasked IP address, or else HBML may decline to provide services to that Trading Participant or Trading Applicant.
  3. Information regarding the Trading Participant’s or Trading Applicant’s business and risk profile and conduct ongoing due diligence on the business relationship, including wherever relevant an IP address with an associated time stamp, geo-location data, device identifiers, Digital Asset wallet addresses, and transaction hashes.
 
  1. HBML may also from time to time request information and documents to ascertain the identity, address and contact details of:
 
  1. the person or entity (legal or otherwise) ultimately responsible for originating the instruction in relation to a transaction;
 
  1. the identity, address and contact details of the person or entity (legal or otherwise) that stands to gain the commercial or economic benefit of the transaction and/or bear its commercial or economic risk; and
 
  1. the instruction given by the person or entity referred to in paragraph (b)(i) above.
 
  1. Where incomplete or suspicious information is provided, HBML reserves the right to reject, suspend or terminate the business relationship with the Trading Participant or Trading Applicant (as appropriate).

Section 23Declaration, undertakings and deposit requirement

  1. HBML may require a Trading Applicant to make a declaration or undertaking in respect of his/her application.
  2. HBML may require a Trading Applicant to deposit a sum of fiat currency to HBML’s designated bank account from his/her bank account with a licensed bank in Bermuda or supervised by a banking regulator of an eligible jurisdiction indicated by the BMA for remote onboarding, in order to verify the bank account information prior to the first trade. No interest will be paid on such deposit. The deposit will be credited to their ledger balance after the on-boarding procedures are completed.

Section 24 HBML’s decision

24.1Decision subject to receipt of all required information

HBML will only process the application after all of the requested information and documents are received in the condition in its sole satisfaction.

24.2Approval conditions

  1. HBML may impose conditions when approving a Trading Applicant’s application which it considers appropriate, and vary or revoke the condition(s) when deemed necessary.
  2. HBML and each Trading Participant, shall enter into a written client agreement which includes a provision stating that:
“In conducting any Digital Asset trading business activities, if we [ HashKey Bermuda Limited] solicit the sale of or recommend any product including any Digital Assets to you [the Trading Participant], the product must be reasonably suitable for you having regard to your financial situation, investment experience and investment objectives. No other provision of this agreement or any other document we may ask you to sign and no statement we may ask you to make derogates from this clause.”

Section 25Deleted

Part F – Account Opening and Trading Rules

Section 26Trading on HashKey Global

  1. HBML will follow the trading rules and trade verification procedures, which are briefly outlined below and as set out in detail in the Account Opening and Trading Rules, to provide Trading Participants with high-quality Digital Asset trading services and a first-class trading experience.
  2. When the trading rules change, HBML will inform Users as soon as possible by system notification and announcement on HashKey Global’s official website.
 
  1. Upon becoming aware of events such as hard forks and airdrops, HBML will notify Trading Participants as soon as practicable.

Section 27List of assets traded

The list of Digital Assets traded on HashKey Global is published on the official website of HashKey Global and will be updated from time to time.

Section 28Permitted investors only

  1. If a Trading Participant is an entity which in turn provides services or products of HashKey Global to its clients, such Trading Participant must satisfy HBML that all such clients and end users of HashKey Global are permitted investors under applicable laws.

Section 29Pre-funded trades only

  1. HBML will only execute a trade for a Trading Participant if there are sufficient Digital Assets and/or fiat currencies in the Account to cover the intended trade.
  2. HBML will not support trading outside HashKey Global and routing of Orders to other trading platforms or exchanges.

Section 30Trading channels

  1. Trading Participants should place an Order on the trading portal of HashKey Global.
  2. If a Trading Participant elects to place an Order through the API provided by HashKey Global, the API information and specifications can be found on the HashKey Global official website.

Section 31Trading time

Please refer to the HashKey Global official website for trading time.

Section 32Limits and price limits of an order

  1. As part of the account opening process, the Trading Participants’ risk tolerance would be evaluated in the categories of “conservative”, “cautious”, “moderate”, “active” and “aggressive”.
  2. Trading Participants can trade on HashKey Global only if their risk tolerance is higher than the level of "moderate", i.e. "active" or "aggressive". Different Types of Trading Participants with different risk tolerances will have different limit as set out in the Account Opening and Trading Rules.

Section 33Trading pairs

The list of trading pairs is published on the official website of HashKey Global.

Section 34Order types and Order time limit

An Order can only be submitted by a Trading Participant to HBML on HashKey Global.

34.1Type of Orders

  1. Market Order:
A market order is an order that does not specify a price. It is executed immediately upon entry. The size of the order that can be filled is dependent on the following conditions: 
  • the amount of liquidity available 
  • the price of the matching liquidity does not exceed the price band of the last executed price 
Any unexecuted portion of a market order is cancelled immediately. 
  1. Limit Order: A limit order is an order that specifies an execution price. The fill price of a limit order cannot be higher/lower than the limit price if the order is a buy/sell order.

34.2Order Time Limit

  1. Valid Until Cancelled (GTC—Good Till Cancelled):
Client GTC orders will remain valid until any of the following events occurs:
  • All the Orders are executed.
  • Trading Participants cancelled their Orders.
  • Orders are cancelled by the system. (For example: product removal)
 
  1. Execute Immediately or Cancel (IOC—Immediate Or Cancel): An IOC order is executed immediately. Any portion of an IOC order that cannot be filled immediately will be cancelled.

Section 35Order execution methodology

35.1Order Verification Rules

To mitigate potential user mistakes in order placement, HashKey Global adopts a transaction confirmation mechanism. The time involved below is expressed in time zone, i.e. UTC + 0 time.
When a Trading Participant places an Order, the HashKey Global platform will provide the User with following information:
  1. Order details:
    1. Order type
    2. Product
    3. Quantity
    4. Order time limit
  2. Order estimation:
    1. Transaction fee
    2. Transaction net amount (after deduction of transaction fee)
Once the transaction is executed, it cannot be cancelled. 
When the Order is successfully completed, the Trading Participant can review the following information about the Order on the platform:
  • Executed Time
  • Trading Symbol Name
  • Direction of the trade
  • Executed Price
  • Executed Volume
  • Fees
  • Total Volume of the order

35.2Order Priority

The orders of the HashKey Global platform are matched in the trading system according to price and then time priority;
  1. Price Priority: Bid orders with higher prices are ranked higher and ask orders with lower prices are ranked higher.
 
  1. Time Priority: Orders with the same price are ranked by their arrival time stamp. The earlier the order arrives at HashKey Global, the higher the ranking of the order.
 

35.3Execution of Order

  1. The procedures by which an Order is executed is set out in the Account Opening and Trading Rules.
  1. (i) When you place a limit order, HashKey Global will freeze the amount of asset that is involved in the order plus trading fee, i.e., either the maker or the taker fee, whichever is higher.
(ii)   When you place a market order, HashKey Global will determine if the available balance in trading account exceeds the total trading amount plus all necessary fees. Order entry will be blocked if the condition is not met.
(iii) When a buy order price and a sell order match in price, the maximal size of either orders that can be matched at the price will be executed. An order may be executed with multiple matching orders.

35.4Cancellation and amendment of Order

Trading Participants may submit a request to cancel any of their orders that are not fully matched on HashKey Global.

35.5Conflicts of Interest

(a) HBML may provide services to employees of HBML and its group companies and affiliates who can qualify to trade on HashKey Global (each referred to as a “Connected Party”).
(b)  Trading Participants’ interests are crucial to HBML.  In order to prevent conflicts of interest, HBML adopts the following best execution principles:
  1. Price: Bid orders with higher prices are ranked higher and ask orders with lower prices are ranked higher.
 
  1. Time: Orders with the same price are ranked by their arrival time stamp. The earlier the order arrives at HashKey Global, the higher the ranking of the order.
 
  1. Customer first: Where a Connected Party and a Trading Participant place Orders for the same Digital Assets at the same time and at the same price, Orders of Trading Participants have priority over Connected Party' Orders.
(c) In addition, HBML has internal governance documentation that regulates conflicts of interest. Such documentation applies to (including but not limited to) all employees and short-term and long-term consultants of the company. Once employees find a conflict of interest, they should report to their immediate supervisor or the compliance department of HashKey Digital Asset Group Limited immediately.

Section 36Depositing and withdrawing Client’s fiat currencies and Digital Assets

36.1Deposit/Withdrawal Procedures

Two-factor authentication must be enabled before Trading Participants can deposit and withdraw Digital Assets in their HashKey Global account. The steps for deposit and withdrawal of Digital Assets are set out in the FAQ of the official website of HashKey Global.

36.2General Rules for Deposit/Withdrawal

  1. (i) Deposit of Digital Assets: For deposit via personal wallet, the deposit transaction will be processed when a certain number of confirmations are reached and has completed HashKey Global’s internal review. The deposit will then be credited and displayed automatically displayed on client’s account.
Whereas for deposit via Third Party Exchange, the deposit transaction will also require HashKey Global’s internal review, which is subject to FATF’s Travel Rule Requirement.
Users are reminded to enter the correct deposit address as confirmed transactions on blockchain may be irreversible.
(ii) Deposits of fiat currencies (if and when applicable): Deposit transaction will be processed after the funds are received and cleared by our designated bank. The deposit will then be credited after it has completed internal review and displayed on the client's account.
  1. (i) Withdrawal of Digital Assets: After the withdrawal application is accepted, the confirmation will be sent to the requesting Trading Participant which delivery time will depend on the speed of the blockchain network. Therefore, the time for the requesting Trading Participants to receive the requested Virtual Assets may vary from a few minutes to several hours or longer.
The Trading Participant should make sure the correct address is entered. Otherwise, HashKey Global may not return the Client’s Digital Assets.
(ii) Withdrawal of fiat currencies (if and when applicable): After the withdrawal application is accepted, the request amount will be accredited in the Trading Participant’s bank account after processing by our designated bank, however, this may be subject to the bank’s procedures.
 
  1. Number of block confirmations for successful withdrawal application:
Block confirmation depends on network conditions. Delays may occur due to network congestion.
  1. HBML and Associated Entity will not conduct any deposits and withdrawals of User’s Digital Assets through any wallet address other than an address which belongs to the User and is whitelisted by HBML and Associate Entity, except under permitted circumstances specified by applicable authorities.

Section 37Restricting, suspending, rejecting or cancelling Orders

  1. In order to maintain the fair and orderly operation of HashKey Global, HBML may take the following actions as it considers appropriate:
  1. Restrict or suspend trading of a Digital Asset on HashKey Global;
  2. Reject or cancel any Orders; or
    1. Freeze any accounts.
    2. HBML may exercise its power under Section 37(a) in the following circumstances:
      1. Mismatching;
 
  1. Upon notice of any information that may reasonably be expected to materially affect market activity for and the price of any Digital Asset;
 
  1. Upon discovery of any market manipulative and abusive activities; or
 
  1. Any other circumstances which in the sole discretion of HBML will impair the fair and orderly operation of HashKey Global.

Section 38Clearing and settlement

  1. HBML may designate a system for the purpose of providing clearing and settlement services. All Trading Participants shall settle all Orders through the system and comply with the terms and conditions of the system as notified to Trading Participants from time to time.
 
  1. HBML may in its sole discretion determine a standard settlement period of each Digital Asset from time to time.

Part G – Trading Halt, Suspension and Resumption of Trading

Section 39Criteria and procedure of trading halt, suspension and resumption of trading

  1. HBML reserves sole discretion to halt or suspend trading on HashKey Global at such time and for such duration as it may determine in accordance with HBML’s internal policies, which provide the criteria and procedure for halting and suspending a Digital Asset from trading on HashKey Global, and the arrangements during trading suspension, outages and business resumption.
 
  1. An Issuer whose Digital Asset is suspended from trading on HashKey Global shall continue to comply with these Exchange Rules in so far as they are relevant to it.

Section 40Notification of trading halt and suspension

If HBML exercises its power to halt or suspend a Digital Asset from trading on HashKey Global, HBML will notify Users through email, system notification and announcement on HashKey Global’s official website.
Section 41HBML’s decision
HBML’s decisions made under this Part G are conclusive and binding on the Users. Unless otherwise determined by HBML pursuant to applicable law, no loss or damage sustained by the Trading Participants shall be compensated by HBML and all such rights of the Users are irrevocably waived.

Part H – Custody of Digital Assets

Section 42Custody arrangement
  1. HBML holds Digital Assets on behalf of Trading Participants in a segregated account established by its Associated Entity.
  2. HBML’s Associated Entity adopts security standards in accordance with industry best practices and international standards in relation to the custody of Digital Assets. HBML has an insurance policy covering the risks associated with the custody of Digital Assets held in both hot storage and cold storage.
  3. The Associated Entity shall only receive, send, store or engage in other activities involving airdrops, hard forks or other derivatives, enhanced or forked protocols, token burns or buybacks, or other similar events, upon receipt of and in accordance with specific instructions of HBML, to the extent supported by the Associated Entity.
  4. HBML will, through its Associated Entity, store no less than 90% of Trading Participants’ Digital Assets in cold storage (Hardware Security Module (HSM)) (i.e. private keys are kept offline without access to the internet), in order to minimise exposure to losses arising from a compromise or hacking of HashKey Global. HBML endeavours to minimise transactions out of the cold storage in which a majority of Trading Participants’ Digital Assets are held.

Section 43Title to Digital Assets

HBML appoints its Associated Entity as custodian of HBML relating to the storage of the Digital Assets of Trading Participants. HBML and its Associated Entity has no right, interest, or title in such custodial Digital Assets, except to the extent as provided in these Exchange Rules.

Section 44Segregated accounts

44.1Digital Assets

  1. All Trading Participants’ Digital Assets are held in a segregated account (i.e. an account designated as a client or trust account) established by HBML’s Associated Entity for the
 
  1. purpose of holding client assets and are segregated from the assets of the Platform Operator and its Associated Entity.
 
  1. For each type of Digital Asset, the wallets in HBML’s Associated Entity’s client wallet system constitute:
 
  1. hot wallet(s), which is further composed of individual client wallets and an aggregated client hot wallet; and
 
  1. aggregated cold wallet(s), into which no less than 90% of that particular type of Digital Asset should be stored.

44.2Client’s fiat currencies

  1. If and when deposits of fiat currencies are accepted on HashKey Global, HBML may also establish segregated accounts by the Associated Entity with an authorised financial institution in Bermuda or another bank in another jurisdiction permitted under applicable laws from time to time,
for safekeeping Client Money, into which fiat currencies received from or on behalf of a Trading Participant should be paid within one Business Day of receipt.

Part I – Prevention of market manipulation and abusive activities

Section 45Identify market manipulative and abusive activities

  1. HBML established and implemented internal governance documentation for the proper surveillance of HashKey Global in order to identify, prevent, and report any market manipulative and abusive activities.
  2. HBML also conducts post-trade monitoring to reasonably identify any:
    1. suspicious market manipulative or abusive activities; and
 
  1. market events or system deficiencies, such as unintended impact on the market, which call for further risk control measures.

Section 46Reporting

Upon becoming aware of any market manipulative or abusive activities, whether actual or potential, on HashKey Global, HBML is required to notify the Financial Intelligence Agency “FIA” of such matter as soon as practicable, provide the FIA with such additional assistance in connection with such activities as it might request and implement appropriate remedial measures.

Section 47Market surveillance programme

  1. HBML adopts a market surveillance system provided by a reputable and independent provider to identify, monitor, detect and prevent any market manipulative or abusive activities on HashKey Global.
  2. HBML is required to provide access to this system for the FIA to perform its own surveillance functions when required.

Part J – Fees

Section 48Fees to be published on website

  1. The current fee schedule adopted by HashKey Global could be found on the official website of HashKey Global which will be updated periodically without prior notice, unless required under laws of Bermuda.
  2. In relation to admission, the fee structure is designed to avoid any potential, perceived or actual conflicts of interest. In relation to trading, HBML will charge a percentage of the transaction amount daily. Different fees may apply based on the type of Order (including whether a Trading Participant is providing or taking liquidity), transaction size and type of Digital Assets transacted (if applicable). In relation to deposit and withdrawal, no deposit fee will be charged, and a different fixed withdrawal fee will apply based on the type of Digital Asset.
  3. HBML will transfer fees from the aggregated client hot wallet to HBML’s hot wallet daily at 00:00 (UTC+0 - Greenwich Mean Time).
  4. HBML may in its sole discretion and where applicable waive, reimburse, or pay for Trading Participants’ on-chain transaction fees (i.e. gas fees), including fees for transferring between an individual client’s wallet and other internal wallets, and withdrawals from HashKey Global as set out on the official website of HashKey Global.

Part K – Breach of these Exchange Rules

Section 49HBML’s power to investigate

  1. HBML may investigate any matter that relates to HashKey Global on its own initiative or upon receiving a complaint or enquiry from any person.
  2. Users under investigation shall promptly provide any necessary assistance to HBML during an investigation.
  3. HBML will retain a record of all investigations conducted.

Section 50Request to remedy

  1. Where a User is found to have breached the Exchange Rules or to have conducted its business in a manner that is detrimental or prejudicial to other Users of , HBML, HashKey Global or the public, HBML may, at its sole discretion, request the breaching User to remedy the breach.
  2. For the avoidance of doubt, HBML may impose other penalties on the breaching User, and there is no obligation on HBML to allow the breaching User to remedy the breach.

Section 51Penalties

HBML may impose any of the following penalties on the breaching User:
  1. public reprimand;
  2. suspension of account;
  3. termination of account; or
  4. any other penalty in the discretion of HBML which is permissible under applicable laws.

Part L – Security of HashKey Global

Section 52 Security measures

  1. HBML employs adequate, up-to-date and appropriate security controls to protect HashKey Global from being abused, including:
    1. robust authentication methods and technology to ensure that access to HashKey Global is restricted to authorised persons only;
    2. up-to-date data encryption and secure transfer technology, in accordance with industry best practices and international standards, to protect the confidentiality and integrity of information stored on HashKey Global and during transmission between internal and external networks;
    3. up-to-date security tools to detect, prevent and block any potential intrusion, security breach and cyberattack attempts; and
    4. adequate internal procedures and training for HBML’s employees and regular alerts and educational materials for Trading Participants to raise awareness of the importance of cybersecurity and the need to strictly observe security in connection with the system.
  2. HBML also has in place effective controls to enable it, where necessary, to:
 
  1. prevent “fat finger” errors such with respect to as input limits or thresholds for Order price and quantity;
  2. immediately prevent HashKey Global from accepting Orders which are, for example, suspicious fraudulent trades initiated by hackers; and
  3. cancel any unexecuted Orders.
 
  1. HBML will arrange at least annual technology audits by a qualified independent professional to ensure the adequacy, reliability, security and capacity of HashKey Global.

Section 53System Maintenance and Interruptions

53.1System Maintenance Arrangements

  1. When HBML needs to perform system maintenance, the following measures will be taken:
  1. evaluating the impact, start time and estimated end time of the maintenance in advance;
  2. notifying Users of the impact, start time and estimated end time of the maintenance as soon as possible though email, SMS, system notification and announcement on HashKey Global’s official website; and
  3. notifying Users via email and announcement on website of HashKey Global as soon as possible when the maintenance is over.
    1. If system maintenance requires suspension of transactions, HBML will take the following measures:
  4. evaluating the start time and estimated end time of trading suspension in advance;
  5. notifying Users of the transaction suspension arrangements through email, SMS, system notification and announcement on HashKey Global’s official website;
  6. starting system maintenance and suspend transaction;
  7. after the system maintenance has been completed, changing the status of all Orders to “cancelled”; and
  8. when trading functions return to normal, notifying Users through email, SMS, system notification and announcement on HashKey Global’s official website.

53.2Unexpected Interruptions Handling

  1. When the service or transaction is stopped unexpectedly due to technical reasons or other force majeure, HBML may take one or more of the following measures as appropriate: 
  1. suspending deposit and withdrawal temporarily;
  2. cancelling all Orders in the Order book;
  3. suspending trading function (including order placement, matching and cancellation);
  4. suspending login;
  5. suspending API functionality ; or
  6. closing the website service temporarily; or
  7. changing the status of all unfilled Orders to “cancelled”.
    1. In the event there is a service or transactional interruption, HBML will inform Users by email, SMS, system notification and announcement on HashKey Global’s official website.
    2. Upon resumption of the service or transactional interruption, HBML will inform Users by system notification and announcement on HashKey Global’s official website.

Part M – Contact, Complaint Procedures and Dispute Resolutions

Section 54Contact information of HashKey Global

Users can reach the Client Service Team via email at support@global-cs.hashkey.com

Section 55Complaint procedures

  1. Any complaint should be submitted to HBML through the official website of HashKey Global in accordance with HashKey Global’s Complaint Handling Procedure published on its official website.
  2. HBML will acknowledge receipt of complaints and review them for possible follow-up action. HBML is committed to dealing with complaints quickly. However, the period of time required for following up on the complaints depends on the circumstances of each case.
  3. All enquiries and complaints are treated in strict confidence. However, if circumstances require, HBML may need to disclose information to relevant authorities, regulators or agencies for further follow-up. HBML will seek the enquirer’s or complainant's consent before disclosing any personal information.

Section 56Dispute resolution

Any dispute, controversy, difference or claim arising out of, or relating to, the Exchange Rules, including the existence, validity, interpretation, performance, breach or termination thereof or any dispute regarding non-contractual obligations arising out of, or relating to, it shall be referred to and finally resolved by arbitration administered by the HKIAC under the HKIAC Administered Arbitration Rules in force when the Notice of Arbitration is submitted. The law of this arbitration clause shall be Hong Kong law. The seat of arbitration shall be Hong Kong. The number of arbitrators shall be three. The arbitration proceedings shall be conducted in English.

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  • Yonas Asefa

    Thanks for the update on notcoin 

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